Subway has handed control of its South Korean business to one of the country’s most seasoned restaurant operators, naming Cheong Oh SW as its new master franchise partner. The appointment gives the operator authority over nationwide store expansion and the day-to-day running of the sandwich chain’s existing Korean network.
Cheong Oh SW is an affiliate of Cheong Oh DPK, the group that has operated Domino’s Pizza in Korea for 35 years since 1990 and built it into a leader of the domestic pizza franchise market. Under the agreement, announced in December 2025, Cheong Oh SW supports existing Subway stores and gains operational authority over expansion across the country.
Master franchising tends to succeed when the incoming partner already understands local real estate, supply chains, labour and taste. Cheong Oh brings all four, plus three-and-a-half decades of running a delivery-heavy quick-service brand at national scale — the closest possible rehearsal for scaling Subway in the same market.
“We expect Subway to grow to the next level in the Korean market.”
That framing, from Joseph Hsu, President of Subway Asia Pacific, positions the handover as a growth mandate rather than a caretaker arrangement.
Cheong Oh SW says it will carry over the operational discipline it refined at Domino’s — especially in digital ordering and delivery — and introduce systems tuned to Korea’s fast-moving online market. It also plans menu development aligned with the country’s growing “healthy pleasure” trend, where diners want food that feels indulgent yet lighter.
Subway has relied on master franchise agreements to reset its international growth, matching global brands with local operators who can move faster than a head office ever could. Placing Korea in the hands of a proven multi-brand franchisee follows that playbook, and it underlines how much of the region’s franchise momentum now runs through experienced local groups rather than direct company operation.
For a brand that counts Korea among its most brand-aware Asian markets, the value of this deal is less about a single signature and more about who is holding the pen. A local operator with national infrastructure, delivery know-how and a track record of category leadership gives Subway a credible path to move from steady presence to genuine scale. It is the kind of cross-border, operator-led expansion that increasingly defines where franchise growth in Asia Pacific is heading.
For readers tracking how international brands localise through the right partners, the Korea handover is a useful case study in matching pedigree to market — a theme that runs through much of our franchise analysis. More on Subway’s global approach is available via the brand’s official newsroom.
Source: Seoul Economic Daily — Domino’s Pizza Korea Operator to Run Subway Franchise in Korea
